The SECURE Act and IRA Qualified Charitable Distributions
New SECURE Act laws took effect January 1st - do they affect you?
The SECURE Act of 2019 makes a few changes that might affect people who give through their IRA accounts. For some donors it is important to know that the new law raises the minimum age for required minimum distributions from 70.5 to 72.
If you were required to make a minimum distribution from your IRA in the past, it’s likely nothing has changed. If a charitable distribution to a qualified 501 c 3 charity like The Community Foundation was a helpful strategy, we are still available and happy to help in the future.
If required minimum distributions are new for you, take note. The new law did not change the age at which you are allowed to make a qualified charitable distribution. You could still do so at age 70.5, but it’s probably not prudent to make such a distribution until it can be used to satisfy your required minimum distribution at age 72.
For donors planning their estate, SECURE Act changes to Stretch IRAs may become a consideration. The new rules stipulate that some people who inherit an IRA must empty the funds of the IRA within 10 years. Given these new regulations, it could be more advantageous to name a qualified charity such as The Community Foundation as the beneficiary. As a nonprofit, The Community Foundation is not subject to federal income taxes as an individual heir typically would be.
We are happy to explore charitable giving strategies with you or your advisor at any time.
Call Teri McNally or Emma Miller-Richards at 540 373-9292.